Loaning Money to Family

• ernest_t_bass

  

  Well, let me hear it. What do you think? I know that it "depends on the amount" and all the other cliché responses and arguments, but what do you think?
  
  Good?
  Bad?
• Con_Alma

  I have done it and will do it again. I only loan what I can lose.
  
  There's a fine line between enabling them for future irresponsibility and helping them out. So far I don't think I have enabled them but I have always said yes. I never asked for it back and each time they eventually came to me and paid it back....once over a very extended period of time.
• hasbeen

  

  I rarely loan money, ever, if it is a significant amount.
• McFly1955

  

  Nope.
• ernest_t_bass

  

  I am going to vote "good" but only to see the results. So, when you look at "good," one of those votes are my own.
• FatHobbit

  

  ernest_t_bass wrote: I am going to vote "good" but only to see the results. So, when you look at "good," one of those votes are my own.

  lol, couldn't you just click "show results"?
  
  I've loaned money to family, but I always assume it will never be paid back.
• queencitybuckeye

  Bad idea. I'd consider giving money depending on the circumstances, but no loans.
• ernest_t_bass

  

  Yes, fathobbit, I COULD have just done that, but that also would mean that I have to stop being an idiot for a second.
  
  D'Oh!
• justincredible

  

  Depends on the family member, the situation and the amount.
• hasbeen

  

  ernest_t_bass wrote: I know that it "depends on the amount" and all the other cliché responses and arguments, but what do you think?
  
  

  justincredible wrote: Depends on the family member, the situation and the amount.

  Damn it justin.
• justincredible

  

  Yeah, I know.
• CenterBHSFan

  

  Con_Alma wrote: I have done it and will do it again. I only loan what I can lose.

  
  
  This!
• Manhattan Buckeye

  "I know that it "depends on the amount" and all the other cliché responses and arguments, but what do you think?"
  
  LOL you asked and answered your own question, it is too nuanced of a situation to have a blanket point of view. I will suggest that if family members loan money, it should be a handshake arrangement and money that the lendor can afford to lose rather than actually executing a note or other type of debenture, unless it is business related and may affect tax issues.
  
  When I was in school my Dad kept a running tab on money he "advanced" to me - mostly involving upkeep of my vehicle. I swear Ford hardwired their cars in the 80's to need the transmission rebuilt after 100,000 miles. It wasn't a ton of money but I paid him back over a year when I got my first "real" job. Talking to him now I think he regrets that I paid him back, probably has something to do with me telling my parents that folks in my generation (Gen X) and younger should retire the word retirement from the dictionary, given that none of us will ever retire, whereas my father as a government employee can right now draw a pension that pays above the average American salary for the rest of his life.
• GeneralsIcer89

  After losing $1100 to my father this way (loaned him $1600, only got $500 back), I say BAD. I'll never do it again.
• dtdtim

  It depends on who in my extended family would ask but I probably still would.
  
  My immediate family I would, without question. My family has given me so much that it's the least I could do. If I had it, it's theirs.
• Sage

  

  I don't loan money to anybody.
• Fab4Runner

  

  I never have money to loan. If I did I might consider it.
• ZWICK 4 PREZ

  

  No I just give it b/c I know it most likely isn't getting repaid.
• Heretic

  

  CenterBHSFan wrote:

  Con_Alma wrote: I have done it and will do it again. I only loan what I can lose.

  
  
  This!

  And again! Whether it be family or a friend, I'd never loan more than I care to lose. If someone asked me for $20-40 and didn't pay me back, I could shrug it off, but if it was a number like $100+, things could get ugly in a hurry, as I wouldn't be so forgiving of their failure to repay.
• ernest_t_bass

  

  Here is the situation.
  
  Sibling needs money for rent (due on 10th)
  Gets check on 25th (rebate check for school... something, not sure).
  Landlord has let them pay late once, and says it's not happening again.
  Parents said "NO"
  Sibling has NO money until then (not sure how they will eat)
  
  Leads to following scenario:
  Rock/Ernest T. Bass/Hard Place
• FatHobbit

  

  ernest_t_bass wrote: Here is the situation.
  
  Sibling needs money for rent (due on 10th)
  Gets check on 25th (rebate check for school... something, not sure).
  Landlord has let them pay late once, and says it's not happening again.
  Parents said "NO"
  Sibling has NO money until then (not sure how they will eat)
  
  Leads to following scenario:
  Rock/Ernest T. Bass/Hard Place

  If the sibling was usually responsible, I would go for it. My guess is they aren't and that's why the parents said no.
• Fab4Runner

  

  I've been in a similar situation before. You can't really do anything but wait for your refund check to arrive...it sucks. If your sibling has proof that they will get the money on that date I would say you'd be okay in lending the money.
• GeneralsIcer89

  Get it in writing.
• ZWICK 4 PREZ

  

  ernest_t_bass wrote:
  Landlord has let them pay late once, and says it's not happening again.

  So he says. He'll just be happy he gets his money.
• j_crazy

  

  I hate lending money to people. I wouldn't loan it, you can gift it, don't loan it.